The US elections are surrounded by more uncertainty that ever before, and most of it comes from the Republican candidate. Mr Romney’s economic policies are an unknown-unknown.
Articles by Miguel Navascués
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In economist Luis Arroyo’s view, the Spanish Treasury would have made two mistakes that hit hard the economy: too high a VAT rate, and too expensive energy bills.
Economist Luis Arroyo rephrases the popular “we all are in this together” slogan: we all at the euro zone are heading towards recession in less than a year.
Economist Luis Arroyo describes the dimensions of the troubles the Spanish banking system faces and concludes that Chancellor Angela Merkel has, again, made the wrong moves during the last EU summit.
Even Milton Friedman would understand it if central banks cancelled their public debt holdings, economist Luis Arroyo proves. Do you think that’s crazy? The alternative is a long, painful economic rehabilitation, defaults and poverty.
Past performance casts doubts over what European governments will achieve by implementing the Tobin Tax on financial transactions. Funding costs for banks and their clients, though, will surely increase.
Don’t worry about the external deficit. The Spanish economy needs permanent capital inflows and that isn’t really a problem when the country can generate income to cover interests and dividends. Look at Australia, suggests economist Luis Arroyo.
Behind the latest good news about better external deficit figures in Spain and the US, nominal GDP records demonstrate that Brussels is wrong: it isn’t time for savings when income drops dramatically. Spain needs credit to grow and repay its debts.
Only when private sector hiring has showed some muscle, public jobs have fallen as a percentage of the total employees in Spain. The country’s public sector needs a downsize, and this should be easy to achieve: free the public administration from party politics interests.
The Federal Reserve is hoarding Treasuries, interest rates in the US have plummeted and the inflation menace overhangs like a large knife above the American economy. Not at all, points out economist Luis Arroyo.